The Macrodynamics of Employment Under Uncertainty

• Type: Article in International Conference Proceedings Book
• Date: 2013

Authors

Paulo Ricardo Mota (Author) FEP; Vasconcelos, PB (Author) FEP

Conference proceedings International

Title: Dynamics, Games and Science

Pages: 479-497

International Conference and Advanced School Planet Earth, Dynamics, Games and Science II (DGS II)

World Renowned Calouste Gulbenkian Fdn, PORTUGAL, AUG 28-SEP 06, 2013

Indexing

ISI Web of Knowledge - 5 Citations

Other information

Authenticus ID: P-00K-RQM

DOI: 10.1007/978-3-319-16118-1_25

Abstract (EN): Inthe context of the current Eurozone crisis, the study of the effects of uncertainty in the macrodynamics of employment is a topic of major importance. This paper tackles this challenging question. At a first step a non-ideal relay hysteresis type microeconomic model of employment adjustment with uncertainty is presented. Then, an aggregation mechanism is explicitly considered in order to analyse the aggregate level of employment. Finally, as a new feature, uncertainty is considered endogenously determined by the actual state of the economy. Aggregate time-series built from micro monthly data on a representative sample of Portuguese manufacturing firms is used on a computational implementation of the linear play model of hysteresis. Results illustrate that uncertainty enhances the hysteretic behaviour of employment in small firms, but this effect is not significant for large ones.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 19